The October Sensis Business Index revealed a significant improvement in the economic outlook from Australian small businesses.
Currently, 22 per cent of Sydney businesses said they are extremely confident about the next six months, while a month ago the figure was 12 per cent.
There was a similar jump in optimism in Melbourne, up from a lowly 9 per cent to a more positive 16 per cent.
The figures in Sydney and Melbourne also showed that businesses extremely worried about the next six months are dropping, with Melbourne going from 19 per cent of businesses being extremely worried to just 7 per cent, and Sydney from 11 per cent to now just 5 per cent.
Confidence was also up in Brisbane — now 15 per cent compared to 7 per cent — and Adelaide was up from 11 per cent to 17 per cent.
However, Perth and Hobart bucked the national trend, with the proportion of Perth businesses extremely confident about the future down from 16 per cent to 12 per cent, and Hobart down a massive 12 percentage points from 21 per cent to just 9 per cent.
Sensis chief executive John Allan said that across the board, there has definitely been an increase in optimism.
“Overall, the sentiment has changed significantly for the good in a very short period of time,” Mr Allan said.
“The retail, manufacturing and retail industries continue to suffer from low confidence levels when other industries saw a significant improvement on last month.”
The survey is based on 500 business owners/managers across all states and across 10 business segments, and was conducted by data insights platform Glow in the first week of October.
Twenty-seven per cent of the businesses surveyed had 50 employees or more and 55 per cent of businesses had been operating for more than 10 years.